Montreal, December 16, 2014. Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to announce the execution of a new option agreement with Sphinx Resources Ltd. (“Sphinx”) for its Adam property, currently wholly owned by Midland and consisting of 182 cells covering a surface area of about 100 square kilometres located approximately 50 kilometres west of the town of Matagami in the Abitibi region of Quebec.
This new property exhibits strong gold and copper potential and is located about 15 kilometres east of the B26 Zone held by SOQUEM inc.(“SOQUEM”). The B26 and East Zone gold-copper deposits, held and worked actively by SOQUEM, respectively host historical resources in the order of 600,000 tonnes grading 2.9 g/t Au and 2.8% Cu and 750,000 tonnes grading 2.0% Cu and 0.4 g/t Au (Source: SOQUEM’s web site; historical resources non-compliant with NI 43-101). In addition, drill holes completed in 2012 by Excellon Resources Inc. (“Excellon”) on the Beschefer property (B-14 Zone) located less than 7 kilometres west of the Adam property, intersected high-grade gold intervals reaching 13.1 g/t Au over 8.8 metres, including 58.5 g/t Au over 1.50 metre (Source: press release by Excellon dated April 17, 2012). The Adam property is also located about 20 kilometres east of the former Selbaie mine, which historically produced56.5 million tonnes grading 1.9% Zn, 0.9% Cu, 38.0 g/t Ag, and 0.6 g/t Au.
Pursuant to this new agreement, Sphinx may earn 50% of Midland’s interest over a period of four (4) years, by fulfilling the following conditions:
– Cash payments totalling $250,000, including a $20,000 cash payment upon signing the agreement;
– Exploration expenditures totalling $3,000,000, including $400,000 during the first year with a firm commitment of $200,000. Midland will be project operator during the option period.
This new acquisition, with strong gold and copper potential, covers more than 8 kilometres of the well-mineralized regional contact between tholeiitic volcanic rocks of the Enjalran Group and calc-alkaline volcanic rocks of the Brouillan Group as well as an assemblage of felsic volcaniclastic rocks. The B26 Zone is hosted in felsic to mafic volcaniclastic rocks with iron carbonate, chlorite, sericite, and silica alteration. In the south part of the Adam property lies another favourable contact, between volcanic rocks of the Enjalran Group and wackes, mudrocks, and iron formations of the Taibi sedimentary Group. A gold showing is located less than 5 kilometres west of the Adam property, where a historical drill hole yielded grades reaching 19.9 g/t Au over 0.77 metre (Source: SIGEOM map sheet 32E10, GM56241).
On the Adam property, historical INPUT electromagnetic surveys identified several conductors that had never been drill-tested. These are, located near the felsic volcanic units identified near the favourable regional contact between the Enjalran and Brouillan groups.
A helicopter-borne VTEM electromagnetic survey totalling about 800 line-kilometres will be flown in December 2014 to cover the entire property.
Maps showing the location of the Adam property subject to the new option agreement with Sphinx may be consulted using the following link: http://media3.marketwire.com/docs/Adam_Dec16_2014.pdf
Midland targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, PGE, base metals and rare earth elements. Midland is proud to count on reputable partners such as Sphinx Resources Ltd., SOQUEM inc., Teck Resources Limited, Agnico Eagle Mines Limited, Japan Oil, Gas and Metals National Corporation and Maudore Minerals Ltd. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Management is currently reviewing other opportunities and projects to build up the Company portfolio and generate shareholder value.
This press release was prepared by Mario Masson, VP Exploration for Midland, certified geologist and Qualified Person as defined by NI 43-101. For further information, please consult Midland’s website or contact:
Gino Roger, President and Chief Executive Officer
Tel: 450 420-5977
Fax: 450 420-5978
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland’s periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities.